What is the n for the present value calculation

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Reference no: EM133346001

Questions: On January 1, Year 1, H2P Company issued 10 year 6% coupon bonds with a par value of $500,000. The market rate of interest on the date of issuance was 4%. Interest is payable semi annually on June 30 and December 31.

1. What is the N for the present value calculation?

2. What is the i for the present value calculation (as a 96)?

3. What is the amount of cash interest paid to the bondholders every six months (whole dollars, no cents, no $ Sign)?

4. What is the issue price of the bonds {whole dollars, no cents, no $ Sign)?

5. Calculate total interest expense over the life of the bonds. (whole dollars, no cents, no $ sign).

6. What is the carrying value of the bonds after period 2, at December 31, Year 1.

7. Were the bonds issued at a premium, discount, or par?

Reference no: EM133346001

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